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Sale of Goods

Posted by snowie , Thursday, April 15, 2010 4:15 PM

Based on the Sale of Goods Act 1957 (section 2), it defines the word 'goods' into two categories, which are a) every kind of movable property and b) goods may be either existing or future goods (s.6).

For the category of 'every kind of movable property', it includes growing crops, grass, stock and shares, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. However, movable property excludes the actionable claims, money and land.

For the goods may be either existing or future goods which under section 6, Sale of Goods act 1957. It stated that the existing goods are goods already owned or possessed by the seller, and may be either specified or agreed upon at the time a contract of sale is made. Besides, it stated that the specific goods means goods identified and agreed upon at the time a contract of sale is made. For example, if Kelvin agrees to buy John's car bearing the registration number WST 155, this is a contract for the sale of specific goods.

After defined the meaning of 'goods', now intro the nature of sale of goods contract. A contract of sale of goods is a contract whereby the seller transfer or agrees to transfer the property in good to the buyer for a price (s.4(1)). In other words, a sale occurs when the ownership or property in goods passes to the buyer. The differentiation between transfer and agrees to transfer is transfer the goods and ownership immediately or later. Seller transfers the property in good to the buyer for a price means it is happen immediately. In contrast, if seller agrees to transfer the property in good to the buyer for a price, it means that it do not happen immediately.